Is Globant SA overvalued or undervalued?

As of 10 September 2025, the valuation grade for Globant SA has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company is currently considered overvalued based on its P/E ratio of 25, which is significantly higher than the peer average of 14.44 for Globant SA, and also higher than the EV to EBITDA ratio of 11.57 compared to peers like Amdocs Ltd. with a ratio of 23.48. Additionally, the EV to Sales ratio stands at 1.89, which further supports the notion of overvaluation.
In terms of performance, Globant SA has underperformed significantly against the S&P 500, with a year-to-date return of -73.30% compared to the S&P 500's 12.22%. This stark contrast in returns reinforces the view that the stock is overvalued relative to its peers and the broader market.